Thesis Abstract

Abstract
The stock market is a complex and dynamic system influenced by various factors, making it challenging for investors to predict trends accurately. In recent years, the application of machine learning techniques has gained popularity in the financial industry for predicting stock market trends. This thesis explores the effectiveness of machine learning algorithms in predicting stock market trends and compares their performance with traditional forecasting methods. The study focuses on developing and evaluating predictive models using historical stock market data and a diverse set of features. Chapter 1 introduces the research topic and provides background information on the use of machine learning in financial forecasting. The problem statement highlights the difficulty of accurately predicting stock market trends and the potential benefits of leveraging machine learning algorithms. The objectives of the study include developing predictive models, evaluating their performance, and comparing them with traditional methods. The limitations and scope of the study are outlined, along with the significance of applying machine learning in stock market prediction. Chapter 2 presents a comprehensive literature review on machine learning techniques and their applications in predicting stock market trends. The review covers various algorithms such as regression, decision trees, support vector machines, and neural networks. It also discusses feature selection, data preprocessing, and model evaluation methods used in financial forecasting research. Chapter 3 details the research methodology employed in this study. The chapter includes the data collection process, feature engineering techniques, model selection, hyperparameter tuning, and performance evaluation metrics. The methodology section provides a step-by-step guide on how predictive models are developed and assessed using historical stock market data. Chapter 4 presents the findings of the study, including the performance metrics of the developed machine learning models in predicting stock market trends. The chapter discusses the accuracy, precision, recall, and F1 score of the models and compares them with traditional forecasting methods. The analysis includes visualizations of model predictions and insights into the factors influencing stock market trends. Chapter 5 concludes the thesis by summarizing the key findings, discussing the implications of the research, and suggesting areas for future work. The conclusion highlights the effectiveness of machine learning algorithms in predicting stock market trends and the potential for further improvements in model performance. Overall, this thesis contributes to the growing body of research on the application of machine learning in financial forecasting and provides valuable insights for investors and financial analysts seeking to make informed decisions in the stock market.

Thesis Overview